Interface Net Income Down Slightly, Sales Flat

Atlanta, GA, Oct. 21, 2008--Profits fell slightly but sales were flat for Interface Inc. in the third quarter compared to a year ago.

Interface reported net income of $8.4 million, or $0.14 per share, compared with net income of $8.6 million, or $0.14 per diluted share, in the third quarter last year.

Sales for the third quarter of 2008 were $278.4 million compared with sales of $279.5 million in the third quarter of 2007. Operating income was $31.0 million, or 11.1 percent of sales, compared with operating income of $34.8 million, or 12.4 percent of sales last year.

Included in the was an after-tax loss from discontinued operations of $5.2 million, or $0.08 per diluted share.

"Our sales in the 2008 third quarter showed remarkable resilience in the current economic environment and illustrate the benefits of the strategic actions we've taken to strengthen our position in the market," said CEO Daniel T. Hendrix.

"Driven by our diversification across both end markets and geographies, third quarter sales held substantially even with the strong results reported a year ago. While we have seen a slowdown in demand within the corporate office segment, particularly in Western Europe and the United States, it has been balanced by continued solid demand for modular carpet in segments such as government, education, healthcare and retail, and growth in emerging geographic markets.

"In Europe, we continued to invest in the implementation of our market diversification strategy, which has been a strong driver of our success in the United States. While these investments have had a near-term impact on profitability, we believe there is a significant opportunity for growth in Europe in these segments, which have remained largely untapped to date."

For the first nine months of 2008, sales were $835.2 million, compared with $787.9 million for the same period a year ago, an increase of 6.0%. Operating income for the 2008 nine-month period was $95.4 million, an increase of 6.1% versus operating income of $90.0 million in the comparable 2007 nine-month period.